Distribution Strategies

Online travel company priceline’s first-quarter net income more than doubled. The company posted net income of $53.9 million, which compares to $25.0 million in the same period a year ago.

Published: 11 May 2010

Online travel company priceline’s first-quarter net income more than doubled. The company posted net income of $53.9 million, which compares to $25.0 million in the same period a year ago.

Gross travel bookings for the first quarter were $3 billion, an increase of 52.5 percent over a year ago.

Priceline.com had revenues in the first quarter of $584.4 million, a 26.5 percent increase over a year ago.

The company’s international operations contributed revenues of $215.8 million, an 88.2 percent increase versus a year ago.

Priceline.com’s gross profit was $319.1 million, a 53.2 percent increase from the prior year.

The company’s international operations contributed gross profit of $214.9 million, an 88.8 percent increase versus a year ago. Operating income was $87.9 million, a 105.2 percent increase from the prior year.

Growth

Priceline.com’s worldwide businesses were able to maintain gross booking growth over 50 percent in the first quarter, powered by strong growth in hotel room nights, which increased 57 percent over last year.

Jeffery H. Boyd, priceline’s president and CEO, said, “We believe all of our brands continued to gain share in hotel reservations during the quarter.”

International local currency bookings growth was 73 percent, representing continued high rates of transaction growth and stabilising hotel room rates.

Domestic growth at 16 percent came in at the high end of range of guidance despite weaker results in opaque airline tickets and rental cars tied to reduced capacity in those markets.

priceline once again cautioned that growth trends were expected to decelerate throughout this year as quarter-to-quarter comparisons grew increasingly tougher.